Domino's Pizza Enterprises Limited · ASX:DMP
Domino's Pizza Enterprises — Shareholder Meeting (November 2016)
39 slides from Domino's Pizza Enterprises's shareholder meeting presentation, Nov 7, 2016
Slide 1: Chairman's Address
Chairman’s Address Jack Cowin
Slide 2: FY16 Result Highlights
FY16 Result Highlights 94.4 141.4% growth FY13 - FY16 • Net Profit After Tax of $92.0m, up +43.6% (1) (2) 74.2 44.6 • Revenue up +32.4%, or $227.8m, to $930.2m • Underlying EBITDA growth up +40.9% to $180.0m (2) 40.4 50.5 • Underlying EPS up +41.9% (25% CAGR over 9 years) 39.1 37.2 29.1 30.0 19.2
Slide 3: FY16 Result Highlights
FY16 Result Highlights Network Store Count • Added 484 stores to the network, a DPE record Japan, 453 • ANZ outstanding growth, +14.8% SSS ANZ, 714 • Europe EBITDA growth +122.8% Europe, 816 • Netherlands – highest SSS% growth in Europe • Japan – record 69 stores constructed in 12 months ANZ Europ
Slide 4: Dividends
Dividends • The Company paid shareholders a final dividend of 38.8c (70% franked) • Full year dividend was 73.5c, up +41.9% per share on prior year
Slide 5: Managing Director – 12 months contract extension
Managing Director – 12 months contract extension • Key driver of record growth • Short-term contract extended until November 1, 2017 • Long-term contract anticipated 2017 • Aligned with executive incentive program
Slide 6: Conclusion
Conclusion • FY16 has been another record year for Domino’s Pizza Enterprises Limited • On all key metrics our team met or exceeded guidance • Thank you to our shareholders
Slide 7: LUO,
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Slide 8: Domino's Pizza Enterprises Ltd – Chairman's Address
Domino’s Pizza Enterprises Ltd Annual General Meeting Chairman’s Address 7 November 2016 (SLIDE ONE) – Introduction/Holding Slide (SLIDE TWO) – Chairman’s Address It is with great pleasure I address you today in my position as Chairman of Domino’s Pizza Enterprises Limited. This afternoon I will pre
Slide 9: Chairman's Address speech notes (continued)
(SLIDE FIVE) Dividends This performance has allowed us to lift the dividend payable to shareholders again, with a final dividend of 38.8 cents per share, and a full year dividend of 73.5 cents per share, 41.9% higher than the previous year. (SLIDE SIX) Managing Director – 12 months contract extensio
Slide 10: Group CEO's Address
S Group CEO’s Address Don Meij
Slide 11: FY16 Performance - ANZ
FY16 Performance - ANZ • Launched Project 3-10: “Slow where it matters, Fast where it counts” • +14.8% SSS – record for the region • Franchisee same store profitability at record levels • Record sales weeks across 576 of our stores
Slide 12: FY16 Performance - Europe
FY16 Performance - Europe • Acquisitions successfully completed • German market leader Joey’s Pizza (joint venture with Domino’s Pizza Group plc) • Domino’s Germany • Pizza Sprint (France) • 366 stores added in Europe • 64 organic new store openings • Record EBITDA growth of +122.8% • +8.2% SSS
Slide 13: FY16 Performance - Japan
FY16 Performance - Japan • Constructed 69 stores in 12 months • Relocated 34 stores to carry-out friendly locations • 453 stores operational at FY end • Significant roll-out of IT projects including GPS Driver Tracker, Pulse and OneDigital • Network sales up +14.8%, SSS reduced -2.1% (in line with g
Slide 14: Group store focus in FY16
Group store focus in FY16 • Added 484 stores to the network – a DPE record • 600th store opened in Australia • 400th store opened in Japan
Slide 15: Trading update
FY17 Trading update • First 16 weeks SSS results FY17 (to October 23) • ANZ SSS +17.66% • Europe SSS +3.77% • Japan SSS -0.59% • Group SSS +10.67%
Slide 16: Trading update – Digital sales growth
FY17 Trading update – Digital sales growth • Year-on-year online sales growth - FY17 (to October 30) • ANZ +36.9% • Europe +38.1%1 • Japan +24.0% 1 Excluding Germany
Slide 17: FY17 Outlook – upgrading guidance
FY17 Outlook – upgrading guidance • SSS guidance FY17 • ANZ SSS guidance – upgraded to +12-14% (up from +10-12%) • Europe SSS guidance – affirming +5-7% • Japan SSS guidance – affirming 0-+2% • EBITDA – growth expected to be in the region of +30% (up from +25%) (2) • NPAT – growth expected to be in
Slide 18: FY17 Outlook – upgrading guidance
FY17 Outlook – upgrading guidance • Total stores today - 2022 • Store openings – on target for higher end of guidance (175- 195 new stores) • Europe long-term store count 2,600 up from 2,500 • Group long-term store count (3) 4,650 up from 4,550 3) Long-term store count by 2025
Slide 19: FY17 Outlook – Taste the Colour
FY17 Outlook – Taste the Colour • Largest menu change since 2009 • 21 new or improved ingredients and menu options • Three phases • Phase 1 – September New pizzas, desserts, sides, ingredients • Phase 2 – November New seafood range, two new seafood sides, new dipping sauce • Phase 3 – January New Ch
Slide 20: FY17 Outlook – all natural ice cream
FY17 Outlook – all natural ice cream • Market opportunity - $700m in milkshakes and smoothies (AU only) • Target – 10% of Australia/New Zealand market • Premium product, natural ice-cream, -14 degrees • Thick shakes and ice cream cups at launch • Followed by unique Sundaes to launch shortly • Austra
Slide 21: FY17 Outlook - DRU
FY17 Outlook - DRU • DRU - Domino’s Robotic Unit launched March 2016 • DRU – robotics and AI to improve our customers’ experience • DRU Drone by Flirtey TM • Internet of Food • Australian food service industry - (1) $44.4 billion • Delivery - $1.4 billion of food service industry (1) The NPD Group/C
Slide 22: FY17 Outlook – InstaGift
FY17 Outlook – InstaGift™ • A first for the Quick Service Restaurant Industry in Australia • Instant, digital gift cards • A fresh new gift option
Slide 23: FY17 Outlook – My Domino's
FY17 Outlook – My Domino’s • Single employee-focused platform • Live information tiles • Key metrics that matter • My Domino’s Team Member App in progress
Slide 24: FY17 Outlook – Project 3-10
FY17 Outlook – Project 3-10 • Project 3-10 – 250+ stores enabled by FY17 • Advanced, high-speed ovens • 102 stores installed
Slide 25: FY17 Outlook – Abacus
FY17 Outlook – Abacus • New initiatives to be unveiled in February 2017 • 2017 event will include market- leading AI
Slide 26: Outlook ANZ
FY17 Outlook ANZ DOMINO'S % OF PIZZA SPEND YR END SEP 16 • 65 new stores planned • Increasing market share • 38% of the QSR pizza market(1) Domino's • Labour update 34% • Enterprise agreement negotiations expected to be finalised by in H2, DOMINO'S % OF PIZZA TRAFFIC YR END SEP 16 FY17 • Voluntarily
Slide 27: Outlook Europe
FY17 Outlook Europe • Launch of SMS ordering in Belgium • Completion of roll-out of GPSDT in Netherlands • Launch of Project 3-10 in Netherlands • Order Anywhere functionality in Netherlands • Joey’s Pizza conversion to be completed by December 8th • Pizza Sprint conversion of majority of stores by
Slide 28: Outlook Europe
FY17 Outlook Europe • Record organic new store growth in FY17 • 300th store in France opened – July 2016 • 50th store in Belgium to open in FY17 • 250 stores in Netherlands/Belgium today • New French commissary – annualised savings of €2m • Continued EBITDA margin growth • 25% within five years
Slide 29: Outlook – Spotlight on Netherlands
Outlook – Spotlight on Netherlands • 200th store opened in Netherlands • Second largest QSR by sales and store count • Upgrading store count to 400 stores within eight years • Netherlands/Belgium long- term store count of 600 stores
Slide 30: FY17 Outlook Japan
FY17 Outlook Japan • Opening the 500th store in FY2017 • Additional 31 franchise stores by the end of 2016 # of Franchised Store # of Store Franchised % 162 133 34% 119 29% 28% 24% 99 26% 20% 85 17% 17% 64 49 43 Jun-13 H1 14 H2 14 H1 15 H2 15 H1 16 H2 16 H1 17
Slide 31: Conclusion
Conclusion • Upgraded EBITDA – growth expected to be in the region +30% (2) • NPAT – growth expected to be in the region of +30% (1) (2) • Upgrade ANZ SSS guidance – expected to be +12-14% (up from +10-12%) • EBITDA margin forecasts increased in Europe and Australia/NZ • Europe – 25% within five yea
Slide 32: Slide 32
Slide 33: Domino's Pizza Enterprises Ltd – Managing Director's Address
Domino’s Pizza Enterprises Ltd Annual General Meeting Managing Director’s Address 7 November 2016 (SLIDE 8) – Group CEO’s Address Thank you Mr Chairman and thank you to our shareholders here today. It’s my pleasure to address you again as Group CEO and Managing Director of DPE and to provide an upda
Slide 34: Managing Director's Address speech notes (continued)
We continue to increase our network in Japan, realigning our store locations and offerings. We opened 69 stores and relocated 34 to locations more aligned with pick-up orders. At the end of the financial year we had 453 stores operational in this market, up from 259 just three years ago. We have bee
Slide 35: Managing Director's Address speech notes: FY17 Outlook
Greater scale and improved efficiencies are producing improved margins. We are upgrading our EBITDA margin forecast in Europe to 25% in the next five years, and in Australia/New Zealand to 45% within six years. (SLIDE 16) FY17 Outlook – Upgrading Guidance Today we have 2022 stores, including acquire
Slide 36: Managing Director's Address speech notes: DRU Drone and InstaGifts
We have proudly partnered with Flirtey, an Australian company and a leading drone developer. I am very excited to announce that, DRU Drone by Flirtey has started comprehensive testing and trials in New Zealand, as demonstrations in full compliance with Part 101 of the Civil Aviation Regulations. The
Slide 37: Managing Director's Address speech notes: ANZ and Europe outlook
We have 38% of traffic share and 34% of spend share of the QSR pizza market, more than the other four major chains combined.4 There has been much discussion about labour costs, and the progress of our enterprise agreement negotiations. As these negotiations have taken some time, longer than we antic
Slide 38: Managing Director's Address speech notes: Japan outlook
Our long-term store count outlook for the Netherlands and Belgium is now 600 stores. This is greater than the forecast for the Australia/New Zealand market when we listed DPE on the ASX in May, 2005. (SLIDE 28) FY17 Outlook Japan We will open our 500th store in Japan this Financial Year and will rel
Slide 39: Don Meij – DPE Group CEO and Managing Director
Don Meij – DPE Group CEO and Managing Director 7
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